The Federal Senate approved, this Monday (13), the basic text of the bill that limits the Tax on Circulation of Goods and Services (ICMS) on fuel. There were 65 votes in favor of the basic text, against 12 votes against and zero abstentions.
The project defines that fuels — as well as energy, public transport, natural gas and communications — are essential and indispensable goods. As a result, state governments cannot charge ICMS on these items above the 17% ceiling established by the text.
ICMS is levied on the circulation of goods and on the provision of interstate and intercity transport and communication services. It is the most important source of revenue for the states, which are obliged to transfer 25% of the collection to the municipalities.
For states that have a loss of revenue in the year 2022 above 5% of what they collected in 2021, the federal government will bear the surplus. This surplus value will be deducted from the debts of the affected state with the Union.
Federated entities should not be obliged to follow a determined ICMS rate in order to respect the autonomy of the states and the Federal District, but this rate cannot exceed 17%.
For states without debt to the Union, compensation will be made in 2023 with funds from the Financial Compensation for the Exploration of Mineral Resources (CFEM). These states will still have priority in borrowing in 2022.
Compensation will also be allowed through adjustments with loans already made with other creditors, with the guarantee of the Union. This compensation will be valid until December 31 of this year.
The rapporteur, Senator Fernando Bezerra Coelho (MDB-PE), had already presented his first version of the vote in Plenary. In total, 77 amendments were presented by the senators for the project.
Bezerra requested that the project be approved with the acceptance of four amendments; partial acceptance of 24 other amendments, leaving five of them harmed and the others rejected.
During the session, Bezerra said that a study is being carried out to include the expansion of the Auxílio-Gás value in PEC 16/2022 – which establishes that the Union will provide financial assistance to the states and the Federal District, with the objective of offsetting revenue losses resulting from the reduction of the rates related to ICMS levied on fuels. But, for that, it depends on negotiation with the Attorney General’s Office and the federal government.
After reading the report, the senator stated that “after analyzing the amendments, as we have already anticipated, we decided to accept the concern expressed by several Senators and Senators about the possible loss of revenue destined for Fundeb (Fund for the Maintenance and Development of Basic Education). ) and health actions and services, both destinations constitutionally linked to ICMS revenues.”
Bezerra also said that the team’s understanding of ethanol taxation was modified.
“We will make the exemption only until December 31, 2022, placing, in PEC 15/2022, confidence in a definitive solution for the sector. As for credits, we will use the formula negotiated with the government and with the IRS,” he said. Previously, the exemption was scheduled to occur until June 30, 2027.
Biofuels PEC
Another proposal on this Monday’s Senate agenda is PEC 15/2022, also reported by Fernando Bezerra Coelho. The text provides tax benefits for clean energy sources for at least 20 years.
The PEC provides for the creation of a favorable tax regime for biofuels, which would depend on the approval of a complementary law by the National Congress. Under the proposal, rates on renewable sources would be lower than those for fossil fuels.
The rule would be valid for at least 20 years and would apply to the following taxes: Contribution to the Financing of Social Security (Cofins) paid by the company on revenue or billing and by the importer of goods or services from abroad; Contribution to the Programs for Social Integration and Formation of Public Servant Assets (PIS/Pasep) and Tax on Circulation of Goods and Services (ICMS).
*With information from Luciana Amaral, CNN and Agência Senado
Source: CNN Brasil
